Company is Amazon Short Description of Business: What does the company do? What are its key...

Company is Amazon

Short Description of Business: What does the company do? What are its key sources of revenue?

Product Mix: Identify the company’s product mix or key segments. Briefly describe each product line/segment. Include brand names if possible

Expert Solution

Amazon, founded by Jeff Bezos in 1994 earned an operating income of $12.421 billion in 2018 and now works in businesses including e-commerce, cloud services, digital advertising and recently groceries. It also sells Amazon products such as Alexa, the personal assistant, movies and music with Amazon prime.

Key sources of revenue
Amazon has dominance in e-commerce business but it's major profit does not come from online sales. amazon's cloud computing, Amazon's Web Services, are contributing to Amazon's operating income more than the e-commerce business. Amazon dvertising and third party selling are also growing.

Amazon's product mix

1.) Amazon's E-commerce business

Amazon has acquired major e-commerce market by this time all over the world.

Amazon not only sells directly to customers but also acts as a platform for vendors. It also sells services and gives a platform for service providers also which makes money for amazon.

Amazon is building out its branded product businesses, including Alexa, Amazon Fire sticks, Fire TV. Alexa has gained popularity in a very less time due to it's amazing artificial intellegence not only in US but also all over the world.

2.) Amazon's Cloud Business

Amazon Web Services, as said above is growing rapidly and has been making a lot of profits for Amazon lately. It provides services to businesses, government agencies and academic institutions.

3.)Amazon's Digital Advertising

Digital Advertising is also an area of business which has beocme a point of focus for amazon. The market share of Amazon in this business is not like it's e-commerce business (not a monopoly) but it has shown a very promising growth and is expected to achieve new heights by defeating big market players.

jeff jeffy answered 5 months ago

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